KOSPI surges 5.9% as chipmakers rally on shareholder returns

The KOSPI index experienced a significant surge of 5.9% on Thursday, reaching a closing value of 6,852.58, driven by strong performances from chipmakers SK hynix and Samsung Electronics. This rally was fueled by investor expectations of increased shareholder returns and a positive impact from easing U.S. Treasury yields, which boosted risk appetite.

The index opened 3.23% higher and activated a buying-side sidecar at 9:57 a.m., marking the 49th sidecar activation of the year. Foreign investors contributed to the positive momentum by purchasing a net 1.7 trillion won worth of shares, while institutional and retail investors sold shares in the amount of 219.5 billion won and 2.3 trillion won, respectively.

The surge in SK hynix and Samsung Electronics was particularly notable, with SK hynix surging 12.73% to close at 1,691,000 won following its announcement of a 40 trillion won share buyback and cancellation program. This move aimed to counteract profit-taking pressure following its recent rally, and the company also reinforced its shareholder return policy.

Brief written by urgent.news from The Korea Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.